Financially Fit Friday 10 Tips For Talking Finances With Your Spouse

HELOC: Use Your Home’s Value to Improve It

With spring around the corner, many homeowners start thinking about the improvements they’ve been putting off all winter. If your to-do list is long, but your cashflow is short, you might want to consider a home equity line of credit, also known as a HELOC.

These loans give you access to the value you’ve worked so hard to build and they provide the flexibility you need to make your projects a reality.

Many people don’t take advantage of their equity until it’s time to sell. With a HELOC, you can borrow up to 100% of your home’s value, minus your mortgage balance, right now. You can then use those funds to make unexpected repairs, complete residential enhancements to increase the resale value or accomplish pretty much anything you see fit.

One of the nice things about a HELOC is that it’s open-ended, meaning you can draw out money up to the approved limit and pay it back as needed — similar to a credit card, but with much better rates and terms. So, for example, if you’re remodeling your bathroom and you discover that your water heater needs to be replaced, your line of credit could cover that expense as well, without any additional applications or processing.

America First offers an interest-only HELOC, which gives you the lowest possible monthly payments for the first five years. During that time, called the draw period, you’ll only pay the loan’s interest back. When the draw period ends, the loan balance converts to a 10-year repayment plan. At that time, you can start paying down the principal or refinance your interest-only HELOC and start another five-year draw period.

However, please keep in mind that any interest-only HELOC principal balance still needs to be paid at some point. And defaulting on any home equity loan could result in foreclosure. You should practice responsible borrowing and only tap what you can reasonably pay back during the loan’s term. Using a HELOC in this way will help keep you out of financial trouble and give you short-term cashflow for home repairs and improvements.

Financially Fit Friday 10 Tips For Talking Finances With Your Spouse

Charitable Contributions: Financially Sound Generosity

We all know it is better to give than to receive. And, of course, the point of giving to a worthwhile cause is not expecting anything in return. Nevertheless, there are financial benefits to charitable contributions when you file your taxes. Here are a few tips & guidelines regarding taxes and charity.

What Is Deductible?

The IRS doesn’t allow deductions for funds given to specific individuals or families. Meaning, if you give a friend in need some money to help them pay for a medical issue, it doesn’t apply. The contribution has to be to a qualified organization, such as the Red Cross, public schools, churches and many other non-profit organizations. If you have a question a group’s tax-exempt status, contact the IRS online or call 1-877-829-5500.

Keep Detailed Records

If you deduct charitable donations on your return, you’ll need more than just a scribbled note on a napkin. There should be a written communication from the organization, including its name, the date and the amount you contributed. Detailed receipts will ensure you have accurate data and are invaluable in case of an audit.

How Much Can I Deduct?

You can actually deduct up to 50% of your adjusted gross income when it comes to charitable contributions. It’s one of the few itemized deductions that doesn’t have a floor, or lower limit, meaning you get to deduct every dollar that you give to qualified organizations until you reach half of your income level. Every dollar that you donate to charity beyond that 50% of your income will still give you warm fuzzies, but you don’t get to deduct it on your taxes.

It’s Not Just About Money

Cash contributions aren’t the only things that can lower your tax bill. You can also deduct the value of donated clothing, furniture, vehicles and more. To do this right means you have to get a receipt when you donate and determine fair market price of the item — which is, essentially, a reasonable price if you were selling it. There are also cases when you can deduct the cost of travel to and from a place where you volunteer your time, the price of a volunteer uniform and other endeavors.

Please remember that this article is for information only. We recommend consulting your tax advisor with questions regarding specific deductions and charitable donations. However, if you want to start donating today, the America First Community Assistance Program is a wonderful — and tax-deductible — effort you can join. Simply log in to your online banking account and make your contribution.

Financially Fit Friday 10 Tips For Talking Finances With Your Spouse

Valentine’s Day Single and on a Budget

St. Valentine’s Day can be a divisive holiday. On one hand, there are couples who have already set up a wedding savings account and love Cupid, flowers, chocolates and romance. On the other hand, there are people who are single and on a budget — who want to mark the occasion, but won’t be spending money on extravagant dates or giant teddy bears. If you’re in the latter group, here are a few ways to enjoy February 14 without breaking any hearts or the bank.

For the Single Ladies

To celebrate girl power and your love for all of your lady friends, “Galentine’s Day,” popularized by the television series Parks and Recreation, is an excellent option. Bust out your favorite pink and red dresses to really get festive. And if you don’t have a cute dress in the right color, visit a local thrift store to find something fun and affordable.

You’ll also want the surroundings to match the festivity. Here are some budget-friendly DIY decoration ideas for your celebration:

  • Fringed photo backdrop — cut several large strips of pink, white, and red crepe paper, then trim for a fringed border. Attach one side of each to the ceiling and twist the bottom for a great background for your photos.
  • Garland — cut out some felt hearts and hot glue them to a long ribbon or piece of twine. Then you’ll have something to hang over your windows and doorways.
  • Hugs & kisses — take a basic red, white or pink cotton tablecloth and use acrylic or fabric paint to draw simple Xs and Os on it.

We all know food can make or break a party. Brunch is great because it’s affordable and easy for everyone to contribute. It doesn’t have to be elaborate or expensive:

  • Waffles — this staple is always a favorite. Have everyone bring their favorite waffle topping (whipped cream, chocolate, strawberries, etc.) to save some money.
  • Omelets — find items at the supermarket to create an omelet bar. Simple ingredients such as mushrooms, peppers, onions, tomatoes, spinach and cheese are inexpensive, yet delicious.
  • Add granola and dried or fresh fruits to a small bowl of yogurt for a hearty and satisfying snack that is also easy on the pocketbook.

You can also gather to binge-watch your favorite chick flicks via streaming services; it’s much cheaper than heading out to the theater. Give each other Valentine’s-themed manicures as you’re watching. Another idea is to end the evening with a lip-sync battle featuring the all-time greatest girl power songs.

For the Single Men

Don’t worry, guys, we didn’t forget about you! This season is also a good time to celebrate your bromance with your friends! Here are some suggestions for you.

Have a tournament. You probably already own most of the necessary equipment, so it shouldn’t cost much. Just print out a bracket, invite some of your guy friends over, pick a team name and show who is the best at:

  • Basketball — play three-on-three, H-O-R-S-E, or lightning in your driveway or at a nearby gym or blacktop where you can play for free.
  • Football — flag football is fun for large and small teams. You can also search online for pick-up games happening in your area.
  • Ping-pong — go one-on-one in single elimination or compete in doubles. Blast the Rocky soundtrack to make it even more epic.
  • Foosball — you’ll have to determine if your house rules allow spinning or not, but this is even a crowd pleaser for those who don’t like sports.
  • Video games – host a LAN party or dust off your old N64 and play some Goldeneye.

Food is also essential here. Pizza is a good, inexpensive way to feed a large group. Here are some other dishes that you can bring to a bromantic potluck:

  • Seven-layer dip — as long as you have beans, sour cream, guacamole and cheese, people usually won’t count the actual layers. Don’t forget the chips!
  • Pulled pork — shoulder (or Boston butt) roast usually goes for about $2 a pound. Watch store prices and buy when it’s on sale.
  • Hot dogs — add some diversity to your dogs with inexpensive toppings such as ketchup, mustard, Dijon mustard, pickles, relish, onions, sauerkraut, chili, banana peppers and BBQ sauce.

So instead of feeling sad or lonely on Valentine’s if you’re single, have some fun with your friends and do it without spending too much.

Financially Fit Friday 10 Tips For Talking Finances With Your Spouse

Save Money with a Spending Freeze

Have you ever taken a break from spending money? If so, for how long? One or two days? Three? What if we told you that it’s possible to not spend money for an entire week? Of course, everyone’s financial situation is different, but if you’re up for the challenge, here’s how to complete your seven-day spending freeze.

Prepare

First, choose your starting date and mark it on your calendar. If you don’t know what your weekly budget is, track your spending for a few weeks beforehand. This will give you an idea of how much you can save and it will make you more aware of unnecessary spending.

Just before you begin your freeze, gas up your car and go grocery shopping. Plan a menu for the week and only buy what you’ll need. Don’t stock up on excessive amounts of food the day before — that would defeat the purpose of this exercise. Your goal is to use what you have for the next seven days.

Exclusions & Exceptions

Your monthly bills need to be kept current, so make sure to take care of those. If possible, choose a period when you don’t have to pay any reoccurring payments. Additionally, you should always pay the necessary costs of emergencies (basement flooding, broken bones, alien invasion, etc.) and move your spending freeze to another time, if necessary.

Next, set aside your estimated weekly budget and put those funds in a separate account such as money market savings. This will be your backup fund, but otherwise it is off limits. And now, with your gas tank full, your refrigerator full, your bills paid and your money set aside, you are ready to begin.

Get Going

Spend each of the seven days using what you already have. Follow your meal plan, pack lunches from home and don’t stop for fast food on the way home from work. You may even have unexpected leftovers from dinner that can double as lunch for the next day — which will extend the life of your pantry supplies.

Try to avoid unnecessary travel during this week. Oftentimes, we don’t think about the gas we use when we’re out and about. If you can, walk or use a bicycle to run errands. And instead of driving to the city to see a movie, for example, watch something at home that you already own. It’s perfectly acceptable to be a homebody during your freeze.

Follow Up

You did it! And you now have a full week’s budget available to pay off debt, complete a home repair, or put toward a long-range goal. Resist the urge to spend your newfound funds on something frivolous. Keep increasing your savings to you can make your money work harder.

Spending freezes are like juice cleanses — they should be done in moderation. But if you were able to handle a week, you might want to consider periodic freezes several times throughout the year and use the money to make deposits in an America First dedicated savings account for future needs. You’ll be surprised how quickly your financial resources grow when you’re not spending them.

Security Update: Protect yourself during Tax Season

Cybercriminals & their schemes, which seek to rob you of your resources, seem to proliferate during tax season.

The Internal Revenue Service is warning consumers that several threats have been reported across the country. Being aware of them and maintaining vigilance in protecting your personal data is always essential, no matter the time of year.

Here are some examples of recent scams:

  • Identity thieves sent phishing emails to tax preparation firms. The messages purported to come from a company human resources executive, requesting employees’ W-2s. Never provide your personal information to anyone but your trusted tax advisor if you hire someone to do your filing.
  • Taxpayers have been victimized over their returns. One instance involved a scammer submitting fraudulent refund claims using another person’s identifying information, which had been stolen. This caused considerable delays in refunds.
  • Cheats pose as IRS officials and request sensitive information via email or text. The IRS will never contact a taxpayer through these methods and ask for this data. Also, don’t click on any link or attachment in a suspicious email.

And here are some additional tips to help prevent being victimized:

∙Don’t carry your Social Security card or any documents with your number written on it.

∙Check your credit report at least every 12 months, if not more frequently.

∙Secure personal information in your home.

∙Protect your computers & devices with firewalls, anti-spam/virus software, and updated security patches.

∙Go to this link to learn how we are working to safeguard your finances.

Guest Commentary: Expect to See a Strengthening Economy

By Glen Olpin, Senior Vice President/Chief Economist

Each new year gives us the opportunity to reflect on the financial trends & conditions that have affected the membership over the past 12 months, as well as forecast how these economic factors will impact our operations going forward.

We expect a strengthening national economy this year, improving somewhat from what we experienced in 2016. A recent survey indicates most America First members have a wait-and-see attitude toward economic growth. Only 27% of respondents see an improvement coming, compared with over 30% a year ago. However, since the resolution of the U.S. presidential election, we have seen the stock market accelerate, confidence soar, and small businesses demonstrate higher levels of optimism.

Benchmark interest rates edged up slightly during 2016, and we forecast two to three additional quarter-percent increases throughout the year as the American economy gains momentum.

Utah’s 3.1% unemployment rate is well below the national average of 4.7%. The state also ranks among national leaders in job growth. Nevada’s labor markets were greatly improved, with unemployment levels falling to 5.2%. A large percentage of our members believe their personal employment situations will get better this year.

Consumer spending has expanded, resulting in sustained overall economic growth, even without significant increases in personal income. National retail sales grew more than 4% in 2016.

Personal credit saw faster than 6% growth for the year, while at America First, loan demand has been significant and is expected to continue into the future. Due largely to units moved in December of 2016, new auto sales set an annual industry record. Demand is expected to ease slightly during 2017. As it does, we expect dealer incentives to continue playing a key role in sales growth.

Inflation stayed low, but increasing home values & sales have created strong market conditions. We expect continued housing and construction growth during 2017, even as interest rates rise moderately.

While public uncertainty has to a large extent faded, questions remain regarding fiscal spending, regulatory reform, tax code changes, trade relations, and other issues. Ongoing expectations for positive changes in Washington will likely buoy the economy as it expands.

Regardless of the larger economic environment, all of us at America First are committed to providing you with service excellence, delivering high-quality financial products & services, and establishing lasting relationships of trust.

We appreciate the confidence you’ve placed in your credit union and thank you for your membership.

Financially Fit Friday 10 Tips For Talking Finances With Your Spouse

How to Live on Only One Income

Are you preparing to become a stay-at-home parent, dealing with a recent layoff or saving up for a big purchase? Even though it may sound impossible, you can live on only one income and make it work.

Whether you’re single or married, have children or not, these three simple ideas are essential: create a plan, spend less and save more.

Before you think that sounds too easy, let’s break down the specifics:

Create a Plan

Successful single-income families don’t just happen — they require a strategic evaluation. First, create a realistic budget to better manage your money and stick to it. If you need to review it later on, that’s fine, but be sure to get off on the right foot.

Next, stay on top of your bills. Ensure your regular financial obligations are a priority so you don’t end up paying any unnecessary fees or fines. You can also focus your efforts on paying off debt initially, which will free up resources later.

Finally, if you have too many credit cards and loans to keep track of, consider consolidating them at America First. Our low rates and flexible terms will help you save time and money. Plus, having all of your loans in one place will require significantly less mental effort.

Spend Less

If you are moving from multiple incomes to a single income, you’re going need to make significant financial changes. Don’t try to maintain the lifestyle you had with two incomes. Instead, try to make spending sacrifices — such as buying generic instead of brand-name products, or scaling back a planned vacation. It’s much easier to save more when you spend less.

And when it comes to shopping, determine if you really need to go at all. Can you put together some meals using what’s already in your pantry? Do you really need a new pair of shoes? When you head out, always look for the best deal and use coupons or discount codes.

Also, take a look at your housing situation. If necessary, consider moving into a more affordable living space, or refinancing your mortgage to a lower rate. If you already have a reasonably priced home with affordable monthly payments, fix things yourself instead of immediately calling a professional.

Save More

Even though you’ll be cutting down on what you spend as a one-income family, you should still regularly save. A rainy-day fund can give you peace of mind if any unexpected expenses or emergencies pop up. America First has just the right tool to help you set aside some funds, too — dedicated savings accounts, which provide competitive dividends on automatic transfers that you can set up.

Additionally, you can actually save money by not working. If just one of you is going to the office every day, that means only one vehicle is commuting — set aside what you used to spend on gas and upkeep. Those at home will also eat out less than someone at an office and the entire family should do the same — leftover food helps create leftover funds.

Whether your single-income status is temporary or permanent, this advice applies for the short term and the long haul. Making a plan, spending less and saving may seem intuitive — because they are. It’s very similar to the “secret trick” to losing weight: diet and exercise. However, putting these principles first, discussing your strategies and writing things down can truly make a difference.

Financially Fit Friday 10 Tips For Talking Finances With Your Spouse

10 Tips for Talking Finances with Your Partner

Almost everyone resolves to get in shape when a new year comes around, but your financial fitness is just as important. There’s no better time for talking finances with your partner — spouse, family member, boyfriend, girlfriend, or even your live-in canine therapist — about it than now. So here are 10 tips to help your discussion:

  1. Set a Time
    It’s easy to put off these conversations, so mark your calendar and make it a priority. You can also pair it with something fun, like a dinner date. Use our free ABC Deals program to get some cash back for your purchase.
  2. Lose the Distractions
    Put away your smartphone, turn off the TV, and sit facing each other.
  3. Come Prepared
    Plan ahead and consider productive topics. You can even create a spreadsheet or draw a diagram.
  4. Use Effective Communication
    Reflective dialogue — acknowledging the other person’s feelings, displaying sensitivity, asking questions, and listening carefully to answers — is essential.
  5. Talk About the Personal Meaning of Money
    It’s important to understand what money means to your partner and how it reflects your own philosophy. Talk about saving, spending, and the importance of good credit.
  6. Set a Realistic Budget
    Look at your earnings and expenditures, then create a budget that works for both of you. You can use America First’s Money Manager to accomplish this task.
  7. Focus on Goals, Not Bills
    Talking about individual and shared financial goals, rather than bills, will get you both on the same page.
  8. Don’t Keep Secrets
    Being open and honest about your finances will lead to success.
  9. Take a Break
    Discussing money can be tense and, if things start getting argumentative, take a breather and come back when you’re ready.
  10. Involve the Experts
    America First Credit Union offers free recourses like financial counseling. If things become too overwhelming and you need an expert to guide you through your finances, we’re here to help.

At America First, we provide resources such as free online planning and budgeting programs, investment advisors, and free financial counseling. Take advantage of the assistance that’s available to you. And have a happy (financially fit) new year!